Finding 1156633 (2024-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Authority failed to ensure that the Housing Assistance Payment (HAP) amounts matched across the HUD-50058, HAP contract, and HAP register.
  • Impacted Requirements: Compliance with HAP payment regulations as outlined in 24 CFR section 982.158 and 24 CFR Part 982, Subpart K.
  • Recommended Follow-Up: Implement controls to verify that HAP amounts are consistent across all relevant documents to ensure compliance.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests and Provisions – Housing Assistance Payment (HAP) Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the HAP per the HUD-50058 was properly reflected in the HAP contract and HAP register. Questioned costs: Unable to determine. Context: Exceptions were noted in 5 out of 40 tenant files. 12u of the HUD-50058 did not agree to the HAP contract and HAP register for 4 files. 1 file was unable to be located. Cause: The Authority did not ensure that the HUD-50058, HAP contract, and HAP register agree. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure the HAP agrees between the HUD-50058, HAP contract, and HAP register. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Voucher Cluster-Assistance Listing No. No. 14.871 and 14.879 Recommendation: We recommend the Authority implements controls to ensure the HAP agrees between the HUD-50058, HAP contract, and HAP register. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HAKC will take the necessary steps to ensure the HUD-50058 matches the HAP contract and the HAP register by reviewing the accuracy of HAP amount, coordinate general HAP processing controls, (segregating duties to mitigate the threat of fraud or theft), and monitoring files on a monthly basis. HAKC will complete the initial process and complete ongoing compliance reviews. Name(s) of the contact person(s) responsible for corrective action: Lisa Earnest, Director of Housing Choice Voucher Program Planned completion date for corrective action plan: 3/31/2026

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1156619 2024-001
    Material Weakness Repeat
  • 1156620 2024-001
    Material Weakness Repeat
  • 1156621 2024-001
    Material Weakness Repeat
  • 1156622 2024-002
    Material Weakness Repeat
  • 1156623 2024-002
    Material Weakness Repeat
  • 1156624 2024-002
    Material Weakness Repeat
  • 1156625 2024-003
    Material Weakness Repeat
  • 1156626 2024-003
    Material Weakness Repeat
  • 1156627 2024-003
    Material Weakness Repeat
  • 1156628 2024-004
    Material Weakness Repeat
  • 1156629 2024-004
    Material Weakness Repeat
  • 1156630 2024-004
    Material Weakness Repeat
  • 1156631 2024-005
    Material Weakness Repeat
  • 1156632 2024-005
    Material Weakness Repeat
  • 1156634 2024-006
    Material Weakness Repeat
  • 1156635 2024-006
    Material Weakness Repeat
  • 1156636 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $7.96M
14.872 Public Housing Capital Fund $6.95M
14.871 Section 8 Housing Choice Vouchers $1.61M
14.879 Mainstream Vouchers $1.34M
14.889 Choice Neighborhoods Implementation Grants $966,409
14.892 Choice Neighborhoods Planning Grants $299,776
14.896 Family Self-Sufficiency Program $262,734
14.870 Resident Opportunity and Supportive Services - Service Coordinators $131,762